Dangote Petroleum Refinery has officially unveiled new dollar-denominated prices for petrol, diesel, and aviation fuel, marking a significant shift in Nigeria's downstream petroleum market as global crude oil prices remain highly volatile. The refinery announced the policy on Monday, July 13, 2026, explaining that its operations are increasingly exposed to fluctuations in the international crude oil market following renewed geopolitical tensions involving the United States and Iran.
Crude Oil Rally Drives New Pricing Strategy
The refinery's decision followed a surge of more than 20% in crude oil prices, with Brent crude climbing above $90 per barrel before easing to around $84.84 on Tuesday, July 14, 2026. Other international crude benchmarks, including West Texas Intermediate (WTI) and Murban crude, also recorded notable gains during the same period. Industry analysts say the increase in global crude prices significantly raised production costs, prompting Dangote Refinery to introduce dollar pricing for key refined petroleum products supplied to marketers. The move is expected to influence fuel costs across the downstream sector as import parity prices and depot prices continue to respond to developments in the international oil market.
Cooking Gas Exempted from Dollar Payments
Despite adopting dollar pricing for petrol, diesel, and aviation fuel, Dangote Refinery excluded Liquefied Petroleum Gas (LPG), popularly known as cooking gas, from the new payment arrangement. Under the revised policy, LPG transactions will continue under the existing payment framework, a decision that industry observers believe will cushion the impact on households and businesses that depend on cooking gas. The exemption offers some relief at a time when many Nigerians are already grappling with rising energy and living costs.
Depot Prices for LPG Continue to Rise
Although cooking gas remains outside the refinery's dollar pricing policy, depot prices have continued to climb across the country due to higher crude oil prices and prevailing market conditions. Data from PetroleumPriceNG shows that Matrix Warri now sells cooking gas at N1,100 per kilogramme, while Rainoil Lagos has adjusted its price to N1,032 per kilogramme. Both 11Plc and NIPCO Lagos have also fixed their LPG prices at N1,025 per kilogramme.
Experts Explain the Market Impact
Energy policy analysts say Dangote Refinery's decision to exempt LPG could help moderate pressure on consumers despite rising global oil prices. Speaking on the development, energy analyst Adeola Yusuf said Nigerians should prepare for the realities of an increasingly interconnected global energy market. According to him, international geopolitical events continue to shape crude oil prices, making Nigeria's petroleum industry vulnerable to external shocks despite expanding local refining capacity.
What New Dollar Prices Mean for Petrol
Legit.ng earlier reported that Nigeria's downstream oil sector has entered another major turning point after Dangote Petroleum Refinery announced that it has stopped selling petroleum products in naira, switching instead to U.S. dollar-denominated transactions. Under the new pricing regime, petrol (Premium Motor Spirit) will now sell at $0.779 per litre, diesel (Automotive Gas Oil) at $1.087 per litre, while aviation fuel (ATK) will be priced at $0.985 per litre, according to data from PetroleumPriceNG. The decision has sparked widespread debate across the country's energy industry, with many analysts warning that it could trigger another round of fuel price increases if the naira weakens further against the dollar.
